buy northern rock shares now?

Answer 1

I was going to get a loan with them, I think i will pass now!

Answer 2

Sounds like a good idea to me - I am amazed at some of the idiotic replies here though - for instance calling them "the lowest of the low". How silly - they saw a potential problem and took steps to avert it. They ensured they got the backing of The Bank of England though so far have not had to draw upon the money. Sounds like extremely good business practice and consequently I have opened an account with them.

If people bothered to check the facts - for instance that up to £35,000 of savings is protected by the official Financial Services Compensation Scheme then there would not be a problem. Thankfully those stupid people withdrawing their savings will lose out on interest payments - serves them right.

Answer 3

Tthough Northern Rock are in Queer Street for the moment they wil NOT be allowed to go under. How things wiol shape up I do not know but if you are prepared to gamble you could do very well. There is a good chance you will lose most of your money if you are a shareholder. I'd wait a while

Answer 4

This morning when they where 540 i though they were, but i didnt get involved - then they went 420...thats the trouble its like catching a falling knife...but i reckon short term its prob ok...the problem is that house prices in UK have only just started to cool off....by my reckoning they have a heck of a long way to fall...so medium/long term it looks bad not only for Northern Rock (which has already had a precipitous fall by any standards - precisely as they rely on wholsesale money markets for most of their funding - precisely the markets that are currently not functioning - hence their going cap in hand to BoE)...The banks are having to offer higher rates to try and attract deposits in UK - some are currently offering 7.05% for one year fixed deposit. The BoE rate is 6.75% i believe - but if they really need the cash its probably better to be publicly humiliated short term, but have access to badly needed funding. They are not the only ones who need funding - lots of others do as well...some of these banks are starting to raise money in Yen according to a german newspaper article today - as its kinda the only credit market that is functioning - in addition to raising money from the ECB via european subsidiaries. My point is perhaps that currently the crisis is perceived as short-term - but with the underlying assets of these companies (ultimately UK property) poised for a massive crackdown who will really want to fund their ongoing business. Indeed Northern Rock themselves had increased their share of the UK mortgage market massively over the last year or so - via aggressive lending and today stated that they would tighten their lending practises...others will do the same - so where is the money going to come from to support higher UK property prices? Lots of people argue that demand supply imbalances will keep prices at this high level - I think such arguments are nonsense...If I am starving and the price of food is £10 and I only have £3...it doesn't mean I'm not hungry if you see my point...plus there is an old adage that if it aint going up and people say its stable - its probably going down! Standard Variable rates are now just shy of 8%. Who in their right mind is gonna transact in size at that level - leaving aside the coming pain of resets from lower fixes for existing mortgage holders. Now remember that consumption makes up a massive portion of UK economy. I think the trouble for UK is just starting...in fact I asked a question the other day on Yahoo asking why is ftse going up - unfortunately havent had any reasonable replies...in my view UK is priced for disaster, sterling also way overvalued...but short term NRK could be good trade - forget the options - they are priced ridiculously. On the other hand I would be more tempted to short other building socs, banks etc, some of which were down 10% today, into a bounce.....i think people are starting to wake up...but yet again ftse managed a fairly decent rally of the lows...who are these bulltards? things are not at all well in UK. (by the way its prob a bit late as you asked the question 5 hrs ago...mkt closed out around 477 i think...) Happy trading

Answer 5

The low collateralized high risk loan industry is probably the worst place to invest your money. In so many cases the company will eventually implode. If you want to invest in the high risk loan industry you should invest in is one that is collateralized by something worth much more than the loan. Look at the pawn shop industry- those companies are much safer and with a great consistent performance.

Answer 6

I have to say when i was with northern rock with my mortgage they were brill, at the time i was a single mom low wage but they still have me money, when i was going to be skint and was going to struggle one month they helped me out then when i fell pregnant and had baby they were fantastic i had 9 months mortgage free as when i went back to work i had to give up my job (no childminders around at 3am) i cant fault them..

Answer 7

I'm very tempted. There are a lot of narrow-minded traders who can't see that their issues are short term (otherwise the Bank of England wouldn't have helped out).

The only reason they've had to ask the BoE for help is because the other lenders wouldn't loan the money - and that kind of lending is a day to day occurrence. They're only short of liquidated CASH - not assets. Their portfolio is still worth over 100 BILLION pounds.

Answer 8

They're worth a little punt. I reckon they've got another 20% to fall in the short term, based on the customer panic today (and what we'll likely see over the w/e).

I'm sticking a monkey on them at a target price of £3.50. It's worth a laugh!

Answer 9

northern rock are the lowest of the low...i woudl never do business with them!

Answer 10

its a good time to buy